“The offer seems too low,” write Merrill analysts Andrew Obin, Anna Kaminskaya, and Akshay Bhatia. Last month, the analysts put a $35-38/share price tag on the stock, which is up 11% to $29.86 after Icahn’s unsolicited bid. Throwing in a “customary” 20% to 30% change of control premium, that gets you up to anywhere from $42 to $49 per share, they write, which is well above Icahn’s measly $32.50.

The analysts pour cold water on Icahn’s onetime plan to merge Oshkosk with Navistar International (NAV), which they said wouldn’t have created long-term shareholder value and hence “we are comfortable with the existing management ‘block and tackle’ strategy.”

About Focus on Funds

As exchange-traded funds and other investing vehicles have ballooned in number, the task of figuring out what works well and what doesn’t has only gotten harder. Barrons.com’s Focus on Funds looks under the hood of ETFs, mutual funds and hedge funds for overlooked values, actionable ideas and the latest pitfalls for fund investors.

Chris Dieterich has covered the U.S. stock market for The Wall Street Journal and Dow Jones Newswires. He is a graduate of Regis University and the Missouri School of Journalism.